The Analyst

The Rating

He initiated shares at Buy, with a $27 price target.

The Thesis

OptiNose is an innovative and elegant solution for nasal drug delivery, Jefferies said in a Tuesday note. The company's EDS platform has already yielded two novel FDA approved breath intranasal sprays.

Delving on the potential before the company, Jefferies said 30 million Americans suffer from chronic rhinosinusitis, or CRS, although the current treatment options such as intranasal steroid sprays are largely ineffective. After a year of therapy, OptiNose's EDS system aids in polyp elimination, given that it propels more drug higher and deeper into the nasal cavity, Steinberg said.

Steinberg also noted that the company has a good sales and marketing-focused management team, capable of marketing its Xhance aggressively on its launch. On another count, OptiNose's Xhance is a complex product protected by long-duration patents, up to 2030, Steinberg said.

Jefferies estimates peak sales well in excess of $500 million.

Price Action

After listing at $20 on Oct. 13, up from the $16 offer price, OptiNose recorded a gain of 19 percent to $19 on debut. After reaching an intra-day high of $21.46 on Monday, the stock closed the session at $20.76.